Procedure of Setting Up SEZ Unit in India

The Procedure of Setting Up SEZ Unit in India has been simplified for the Indian government wants the number of SEZ to increase in the country. The government of India has simplified method of setting up SEZ Unit in India.

Special Economic Zone means an area that has been specified as an enclave that is duty free and is treated as a foreign territory for various purposes such as tariffs, trade operations, and duties. SEZ help in the economic and industrial growth of the state and this is the reason that the government of India has made it easy to set up SEZs in India. In India, SEZs can be set up by the state government, or its various agencies or any public, private, joint sector. Even foreign companies can set up SEZs in India.

Procedure of Setting Up SEZ Unit in India includes filling up of an application with the name, address, and status of the promoter. Along with the application form, the project report which has details such as the proposed SEZ's location, the details of infrastructure that already exists, details of infrastructure that will be established, and the total area of the proposed SEZ.
The project report of the proposed SEZ that will be submitted along with the application form should also contain investment details, which would include the financing mode and the project's viability. Also it should contain details as to whether the proposed SEZ would be a multi- product or specific industries zone and foreign equity details. The application along with the project report for the setting up of SEZ Unit is submitted to the Chief Secretary of the State.

The Steps of Setting Up SEZ Unit in India are that after the application has been submitted, the state government then forwards the application to the Department of Commerce, Indian government. Along with the application form, the state government has to give their commitment that the area where the proposed SEZ will be set up is free from all kinds of environmental restrictions, that it would provide electricity, water, and various other services when required, and that it would allow transmission, generation, and power distribution inside the SEZ. Further the state government has to give the commitment that it would exempt the proposed SEZ from sales tax, turnover tax, and mandi tax on the goods that are supplied from the area of Domestic Tariff to the units in the SEZ. Also the government of the state has to give the commitment that it would declare the units of the SEZ as Public Utility Service and that the system of single point clearance and minimum inspection would be provided to the SEZ.

Procedure of Setting Up SEZ Unit in India are that once the application has been forwarded that incorporates the state government's commitments then it will be considered by the Department of Commerce's Inter- Ministerial Committee. When the committee accepts the proposal, a permission letter is issued to the applicant of the proposed SEZ.

Procedure of Setting Up SEZ Unit in India, as seen is very simple. The government of India must continue to simplify the Method of Setting Up SEZ Unit in India. For, this will help in increasing the number of SEZ in the country, which in its turn will lead to the growth and prosperity of India.